Prime Minister Surya Bahadur Thapa, leader of the National Democratic Party, incited political disorder on Jan. 8, 1998, when he asked King Birendra to dissolve the parliament and set a date for new elections. Thapa requested early elections following a threatened vote of no confidence by the opposition United Communist Party of Nepal-Marxist and Leninist. The king remained undecided about the issue and, after referring it to the Supreme Court for advice, decided to support the opposition’s call for a special session of the parliament to discuss the no-confidence motion. On February 20 Thapa’s government survived the vote of no confidence against it and thus ended the political and constitutional crisis.

As agreed upon when the coalition government was formed in 1997, Prime Minister Thapa conceded the prime ministership to Girija Prasad Koirala, the leader of the Nepali Congress Party, the largest of the coalition partners. On April 15 Koirala was officially sworn in for his second term as prime minister. Thirteen NCP-UML ministers resigned en masse on December 15, but Koirala was able to strike an agreement with the communists and formed a new coalition, with himself continuing as prime minister, on December 21.

Almost 250 people were killed in monsoon-induced floods and landslides between June and September. These floods caused livestock losses and considerable damage to infrastructure, property, and crops, particularly in the lowlands of the central and southeastern Terai region.